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Search Results 0 to 49 of about 58 (some duplicates have been removed)
Jul 19, 2011 6:30pm EDT
is in the till pays the bills. except there will be no cash in the till after august 2. and jay powell says that means the treasury will be writing checks against whatever cash comes in that day. and powell should know. as treasury undersecretary in the first bush administration, it was his job to manage the nation's debt. >> by our estimate, the government will get about $12 billion in inflows on august 3 and will have bills of about $32 billion. the biggest part of which, by far, is a social security payment. so there may not be enough cash to make that payment. >> reporter: in august, powell expects the government will collect $172 billion in taxes and some republican house freshmen have argued that's enough to cover interest on the national debt, social security, medicare, medicaid, payments to defense companies and unemployment benefits. but even assuming the treasury can picwhllich bis it pays, a questionable assumption, the government would be short $134 billion, leaving no money to pay troops and veterans, student loans, food stamps, the justice department, highway spending, air tra
Jul 4, 2011 4:30am EDT
enough money to pay about 56% of its bills. former treasury official jay powell says the government would likely pay interest first, leaving popular domestic programs in jeopardy. >> it could be social security, it could be medicare. it could be medicaid. we can't pay everything. >> reporter: the stalemate in washington has some asking if president obama can simply bigfoot congress, and order the treasury keep borrowing. there's a little known section in the 14th amendment saying the public debt of the united states shall not be questioned. >> if the congress refuses to act, the argument would run the president of necessity must act in order to follow the command of the constitution. >> reporter: the idea highlights how desperate the debate has gotten. >> it's crazy talk. it's not acceptable for the congress and the president not to do their job. >> reporter: as the clock ticks down with no sign of progress, americans like courtney hinton can only watch in disbelief. >> this bickering and waiting until the last minute, we're not benefiting from that. >> reporter: as washington returns fro
Jul 8, 2011 3:00pm EDT
, making them. let's give it a shot. jay powell served for deputy secretary of finance for george bush, and he is used to making choices so he sat down to figure out what options we have if we don't raise the debt creeling in august, and, oh, my god, they are not pretty. if we blow through the limit, we won't pay 40 to 45% of the bills. let's say we start by paying off the interest on the debt, and continue to keep paying the bills for medicare and medicaid and social security, and the troops. that is it. that is all we can do. at that point we shut off money no fbi and the troops don't get the paychecks and the troops don't get benefits and the courts shut down and so do the national nuclear programs and i hope you weren't trying to keep an eye on any loose fissile material. and the troops will go home with the food inspections. and the people repairing the federal highways take a hike. the irs shuts down and not fun if you are waiting for a refund, and no one is inspecting the food. and speaking of food, poor families stop receiving food stamps, and the department of education stops
Jul 16, 2011 10:00am PDT
our senior citizens or our military may not be getting the checks they depend on. jay powell is a visiting scholar for the bipartisan policy center. he served as the undersecretary for finance at the treasury under president bush, sr. what are the consequences if the debt ceiling isn't raised in time? the prevailing wisdom is that those that hold u.s. debt, bond investors, would get paid first. but what about everybody else? jay, you and others at the bipartisan policy center say it would be impossible to keep paying for all of the most popular and important programs in this country that americans rely on. that means possible reductions or delays to social security, to medicare or medicaid, food stamps, checks to federal workers. president obama, in fact, said this week that he could not guarantee social security checks would be mailed out if we don't raise the debt ceiling. jay, republicans are calling that a scare tactic. forget the politics. tell me what the numbers say. >> yeah, it's not a scare tactic. it's a fact that if the debt ceiling is not raised by august 2, then
FOX News
Jul 17, 2011 11:00am PDT
was a treasury official, jay powell, did an analysis of what the government would have to cut. 44% in other spending. even if you pay social security and medicare benefits you have to choose among military salaries. veterans benefits. unemployment insurance. the fbi. the faa. and the biggest bond company the bond fund which already sold, they have already spoken with their wallet, already sold most of their treasury securities. he says the market situation might resemble what happened after lehman brothers collapse in 2008. this isn't a politician. this is the market talk. >> standard and poors is saying if we don't do something real they will downgrade us whether the debt ceiling gets passed by august 2 or not. where we are h headed, the big crisis that is coming is more important than anything now. if in fact we get past august 2 the president has to lead and make some choices. he has to prioritize. and there is enough money in the month of august to make sure we pay the bond holders. make sure we pay social security recipients and troops in the field. after that the president has to do s
Jul 17, 2011 9:00am PDT
. the bipartisan policy center. a fellow who was a treasury official, jay powell in the george h.w. bush administration did analysis of what the government would have to cut. 44% in other spending. even if you pay social security, medicare benefits, you have to choose among military salary, veteran benefit, unemployment insurance, f.b.i., f.a.a. bill gross, head of pemco, the world's biggest bond company, bond fund, already sold, they have spoke within their wallet, they sold most of treasury securities, he says that the market situation might resemble what happened after lehman brothers collapsed in 2008. this isn't a politician. this is the market talking. >> again, the market is saying that they are saying if we don't do something real to put us on sustainable fiscal path, do something real, they will downgrade us whether the debt creeling is passed august 2 or not. that is the most important thing to keep in mind. where we're headed. the big crisis coming is more important than anything right now. if we get past august 2, the president has to lead. he will have to make choices. he is
Jul 14, 2011 11:00pm EDT
led by jay powell, a republican former treasury official, in august the u.s. has an estimated $306 billion in payment obligations but would only take in $172 billion in revenue, leaving $134 billion shortfall for the month of august. in other words, president obama would have to immediately cut 44% of federal spending. as "the washington post" points out, through august, the government could afford social security, medicare, medicaid, defense contracts, unemployment insurance and payments to bondholders. but then, it would have to eliminate all other federal spending, including pay for veterans for members of the armed services, civil servants, as well as funding for pell grants, special education programs, the federal courts, law enforcement, the fbi. what do they do, close it down? national nuclear programs. housing assistance. it goes on and on. and this is to say nothing of the impact on global financial markets. >> i think it would be a calamitous outcome, create a very severe financial shock that would affect not only the u.s. economy but the global economy. we would destroy
Jul 12, 2011 3:00am PDT
treasury under secretary jay powell about what's at stake if the federal government can't cover the bills. he says hundreds of thousands of paychecks may be on the line if they're signed by uncle sam. >>> thinking about buying a car, you might want to jump on it. >>> also had it with screaming and crying kids while you eat. no kids allowed anymore. parents are saying, how rude. >> and our question of the day. do you think christian lopez would have been better off not catching derek jeter's home run. he may be on the hook for $14,000 in taxes even though he gave the ball back. send us an e-mail, tweet, tell us on facebook. we'll read some of your comments at the end of the hour. the rar. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs. you know, the ones who do such a super job, from we who believe we know just how you feel. they're backed by the superguarantee®? only superpages®. wherever you are, wherever you're going, you'll find the super business you need. so next time, let the good guys save the day. get the supe
Jul 28, 2011 2:00pm PDT
, the price of gold, you would be out of the way of that price. >> jay powell was under the way under president bush. he has been separating back from fiction even getting asked if they issue ious. >> no secret bag of tricks and no magic bullet that will allow us to avoid defaulting on the non-debt-related payments. >> bottom line, jay powell said there is nothing the executive branch with do in the absence of a deal. wolf? >> thanks very much. if the debt battle is leaving a bad taste in your mouth, this man has just the thing to take it away. ice cream. he was handing it out on the mall here. free to everyone. to everyone except lawmakers. there he is. he hopes the frozen treats will be an incentive to them to reach a debt deal. >> thank you. >> everybody qualifies to get a free ice cream. democrats, republicans, libertarians, tea party people, everybody. the only people that do not qualify are those people working up there on the hill. my thinking is when they look out the window approximate see the fun that everybody is having and they are not part of it and they don't qualify, th
Jul 26, 2011 12:00pm PDT
with jay powell, secretary under president bush and talk about a possible back-up plan in case no actual plan, no actual deal is made come august 2nd. stick around for that. >>> coming up we are learning new details about the suspect who says he slaughtered 76 people at oslo, norway, including drugs he took before the attacks. we're learning about this today. also how his attorney plans to defend him in court. >>> also ahead a drunk driver hits and kills a 4-year-old georgia boy. so why is the boy's mother being punished here? we'll be right back. ok. [ cellphone rings ] hey. you haven't left yet. no. i'm boarding now... what's up? um...would you mind doing it again? last time. [ engine turns over ] oooohhhh...sweet. [ male announcer ] the chevy cruze with the my chevrolet app. the remote control car is finally here. well, now she's just playing with us. oh. [ horn honks ] -why? -why? -why? [ female announcer ] we all age differently. roc® multi-correxion 4 zone moisturizer with roc®retinol and antioxidants. lines, wrinkles, and sun damage will fade. roc multi-correxion. correct what a
Jul 29, 2011 3:00am PDT
. >> bottom line, jay powell says is there's nothing the executive branch can practically do in the absence of a deal. >> so in the absence of a deal we know there will be a pretty immediate and stark cutback in government spending, 38 to 40% of everything that we spend is borrowed money, so that means you're going to see immediate results in the economy. >> it's going to be like a 30 to 40% shutdown of government because that's -- something has to stop being spent. it will be very interesting. jay powell, not an alarmist about this by the way is saying clearly still not being an alarmist, but there isn't a solution if they don't raise the debt ceiling. >> i find it fascinating of the trillion dollar coin. >> kind of underscores how absurd this debate has become. and you know, also there's been talk about the president having to prioritize payments. jay powell said legally, it's not so clear that the president has that power without congressional approval. so that's even questionable. >> we know how easy it is to get congressional approval for anything, even the faa these days. >> the trill
FOX News
Jul 17, 2011 3:00pm PDT
it with the two congressmen. the analysis done by jay powell who was a top treasury official. did an analis and found you can do that. you have the mon yepay the bond holders and they will not go in technical default. but you will have to cut other government programs by 44 percent. that is almost half. the argument he makes even if you pay medicare and medicaid. you have to choose between veterans or unemployment benefits and military pay or closing the f.b.i. and faa. >> not necessarily . those are scare tactics. what about money that we spend on nonessentials? >> there is not 44 percent of that. chris, not if you are going to try to do it straight down. you have to take program by program and find that mon i. - money. >> some ages cut 60 percent and some 30 percent. the same across the board, no, that's not how you get there. you take agency by agency and look for those cuts and some will be bigger than 40 percent. >> since we last talked you put out an economic plan that will put america back to work and based on cutting regulations and lowering taxes. you would lower the top individual
Jul 22, 2011 2:00am EDT
and the financial crisis and global recession that that caused, it is not extreme. >> jay powell, interest rates, presumably they would go up in the doomsday scenario? >> yes, i think kristy said it demand goes down, rates go up and that could play out at a consumer rates, mortgage rates, that sort of thing. by add, in the instance of default, i don't think you are looking at lehman. the chaos in the economy, it'll be in people who weren't getting payments and really significant negative shock to the economy rather than in the markets. >> the other thing, if i could add there, jay, is what we don't know is the unknown unknowns. so you know, there are so many dominos in the world economy that be connected to u.s. treasuries and that are built around a triple a rating for u.s. treasuries with. we can't predict what link there will be in the global chain that would break in the u.s. defaults. >> should someone at home watching itself play itself out, news of reports going on behind closed doors, whether the government preparing, whether rating folks preparing, whether wall street preparing, what ab
Jul 21, 2011 1:00pm EDT
if the markets decide there will not be an agreement in time. what can we expect if time does run out? jay powell served as top official at the treasury department under president george herbert walker bush and has studied the potential consequences for the independent bipartisan policy center. he joins us now. jay, what does happen when time runs out, whether it's august 1st, august 3rd, what do we see happening? the bond holders are going to be paid so what kind of choices does the president have to make? >> that's exactly what we see. we see if the debt ceiling's not raised by august 2, starting on august 3 and for the rest of the month, we assume the bond holders will be paid their interest. we assume there's not much risk on that. but that other creditors who are beneficiaries of federal government payments, approximately half of those won't be able to be paid, 50% of other government payments, there won't be the cash to pay them. and we tried many experiments. you can't cut 50% overnight without eliminating many, many popular, important programs. we tried. you can't do it. >> social securit
Jul 25, 2011 3:00am PDT
us on facebook. >> stay with us in about 15 minutes. we will talk to jay powell, treasury undersecretary for george w. bush, whether congress can really raise the debt ceiling in just eight days and what means when it happens. >> for those of you who don't find the conversation fascinating, you will find what jay finds fascinating. what checks get paid, what doesn't get paid and how that affects you. >>> an ar sonnisonist is on the. >> amazing video. man spotted clinging to a car. >> look at this. >> car going 35 miles an hour. unbelievable. why he was hanging on and what happened next. >>> plus, she was beloved for her talent and you infamous for her erratic behavior, arrests and drug problems. singer amy winehouse found dead at her apartment in london this morning. 13 minutes after the hour. purina cat chow helps you well-being. we're all striving for it. nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life. handle more than 165 billion letters and packages a year. that's about 34 million pounds of m
Jul 16, 2011 8:00am PDT
bill. >> reporter: that's jay powell. he oversaw the debt under the first president bush. he says if the u.s. hits the debt ceiling with no more borrowing, the u.s. will bring in maybe $172 billion in revenue in august. but it's committed to spend, oh, about $306 billion. so there'd be enough money to pay just 56% of government's bills. and then -- >> the decision on who gets paid is left up to secretary of the treasury, geithner. he can decide what gets paid and what gets not. >> reporter: nearly everyone expecting wall street, investors, would get paid first, and u.s. would not default. but then, it's tough. government could pay social security, medicare and unemployment benefits, but there'd be no money to pay the troops. or government could pay the troops but then couldn't afford unemployment benefits. and in both cases, there'd be no money for security or any other federal workers. now back to wall street. what would happen to the markets? interest rates likely would rise. how much? that is in dispute. >> it seems very likely that there would be significant disruptions in the
Jul 21, 2011 5:00pm EDT
and the financial crisis and the global recession that that caused is not extreme. >> jay powell, interest rates, presumably they, too, would go up? another part of the doomsday snare dwlee would affect everybody? >> yeah. i think cristea saidwell. interest rates are likely to go up because some buyers go away. rates have to go up. those play out. if it happens any period of time those play out at a consumers rates, mortgage rates, that sort of thing. i would add in the absence of an actual bond default you're not looking at lehman. the real chaos is in the economy. in people who aren't getting their payments and really significant negative shock to the economy rather than in the markets. >> the other thing, if i could add there, jay, is what we don't know is the unknown unknown. so there are so many dominoes in the world economy that are connected to u.s. treasuries and that are built around a aaa rating for u.s. treasuries and we can't predict the link in the global chain to could break, should the u.s. default. >> should someone who's at home and watching this play itself out, the news is ful
Jul 12, 2011 5:30pm PDT
.s. credit rating could very well be downgraded. here to discuss that report is jay powell, who served as undersecretary of treasury under president george h.w. bush, and is now a visiting scholar at the bipartisan policy center. >> thank you, good to be here. >> the president said today that on august 3rd, social security checks might not go out. is it that dire? >> well, if we don't raise the debt ceiling by august 2nd, then on august 3rd, the federal government will come to work and will be short $.44 on the dollar for the rest of august and will not be able to make a great number of very important payments. so the president's statement is important on its face. >> there are public opinions because people first of all said hey we should pay our debts and now they're saying maybe we shouldn't default. what is the distinction between what we're seeing here? is government default really an option? >> well, there's sort of a laboring game going on here. let me divide it. the first is an actual debt default and my work in the background says that's an unlikely event. there's always enoug
Jul 22, 2011 3:00am PDT
category of $74 billion. okay. so this is what i want to talk about now with jay powell, he was a former treasury under secretary under president george h.w. bush, a visiting scholar with the bipartisan policy center which gave us these number. jay, you've run the number. you and your group has run the numbers many different way. what happens in your mind on august 3rd? >> first of all, we don't think that there will be a default on our debt. we think the interest will always be paid first. that's the way it has to be. we have no choice but to default on our debt. half the other payments can't be made in the month of august, and on certain days it's worse. the after temperature in washington might be 70. today's 100. if the average day is 50/50, you showed august 3rd. a whole loss worst than 50/50. a calamity on the first day of a the deadline expires. >> short of trying to illustrate, somebody in the treasury department or somebody somewhere will have to start making choices like this, because if everything can't get paid they've got to decide what does get paid. the other day the fed c
Jul 14, 2011 2:00pm PDT
spenders or fell salaries. so there are real tough choices. i spoke to jay powell who says there are limited appearses. >> it's funny. people want to believe the treasury department has a secret bag of tricks they can deploy to make sure the government is fully financed, and it just is not true. >> wolf, as august 2nd is the deadline, come august 3rd -- this is a wednesday, we have 12 billion into the coffers, but $32 billion in scheduled payment. the next day is not much better. under any scenario, that is an incredible amount of money, we have $10 billion that we owe. you can look at friday, same thing, $7 billion incoming, but $12 billion out the door. i spoke to someone at the treasury department. they say the point is even if the government is able to pay the interest on the debt that it owes, that they consider it still a default if the united states golf is not able to pay federal workers. the other point they make is that it's not easy to essentially just shut down payments. the u.s. government makes 80 million payments every single month, and a number of those are
Search Results 0 to 49 of about 58 (some duplicates have been removed)